Yara and Atome sign 10-year CAN supply deal
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
Norwegian fertilizer giant Yara has signed a binding 10-year offtake agreement with project developer Atome for 260 000 tpy of low-carbon calcium ammonium nitrate (CAN) from Atome's Villeta project in Paraguay.
Atome will use hydropower to produce the renewable ammonia feedstock for the CAN. The final carbon intensity of the CAN produced has not been disclosed. Yara will buy the plant's entire 260 000 tpy output under the agreement, with an option to extend the deal after the 10-year period has elapsed.
The deal gives Atome access to Yara's extensive distribution network in South America. The project is strategically located near key fertilizer markets in Brazil and Argentina, where Yara hopes to distribute much of the CAN supply.
Brazil imported around 225 000 t of CAN in 2024 while Argentina imported just shy of 90 000 t, according to Global Trade Tracker data, most of which is shipped from the Netherlands.
Soil and weather conditions in tropical climates like those in South America yield greater gains over more temperate climates. Atome's granulation drum should also allow for the addition of sulphur and secondary micronutrients like boron for product differentiation.
Yara targets premium fertilizer markets. The producer is already targeting low-carbon fertilizer production in Europe, made with mass-balanced renewable ammonia from Yara's own 20 000 tpy green plant in Porsgrunn, Norway.
Atome is finalising financing for the US$630 million project, with construction slated to start in the 4Q25 and commissioning expected in 2027.
Read the original article by Mike Nash and Lizzy Lancaster on Argus Media.
Read the article online at: https://www.worldfertilizer.com/nitrogen/18092025/yara-and-atome-sign-10-year-can-supply-deal/